The NIKKEI is higher by 300 or 1.75%. U.S. futures are +104 and the DAX is indicating an open of +0.9%. Gold and silver are lower by 0.7% and 1.7%, respectively. And the dollar is at 9 mo highs versus the euro, higher by 0.7% to 107.7.
Most importantly, bonds are getting knocked out again. The U.S. 2 yr is up an astounding 7bps to 0.98%. The 10yr is at 2.18%, up bigly since Trump got elected. Are people really thinking this through? The rate of change on sovereign yields isn’t a bullish thing.
The US 10yr has moved from 1.75% to 2.18% over the past week.
What’s interesting to note is the widening of spreads between German bunds and PIGS. Portuguese sovereigns are trading at a +316bps premium, Irish +67bps, Spain +120bps and Italy +170bps.
Last week, more than a trillion dollars was lost in sovereign bonds values, while $1.3t gained in equities. Fed policy is looking as hawkish as ever and the dollar strength, which, in the past, was viewed as something of an albatross for exporters, is now something to behold as bullish. In short, we’re undergoing a renaissance, a detente of sorts, for speculators.
Frankly, there is only one logical explanation for all of this optimism: THE TURKEY GODS.
I bet many of you are unaware, but Thanksgiving is next week, a holiday lamented as evil incarnate for American Indians — but celebrated with grande festivals for everyone else. To the winner goes the spoils. As such, markets are moving higher into National Festival and everything is overheated. But this is a good thing for stocks and I mentioned this last week in an Exodus blog.
BTW: Prices for memberships for Exodus and After Hours are rising on January 1, 2017 — so be sure to lock in today’s cheaper rates while you can.
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gold gettin smacked down good & hard… will keep buying… into 1100s…
Turkeyday
L
O
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Yeah I’m sure that’s it,
The reason a 2nd gamechanger event in a year is thrusting markets higher
OpEx is on Friday. Expect the unexpectable.
I doubt many positioned themselves for Dow 19,000 post-election.
Why is Fed policy deemed as being hawkish?
Watch housing prices drop in cities (million dollar homes in middle class neighborhoods), and housing prices rise in rural areas.
I also think the market is pricing in a cut in corporate tax rates rather than a cut in individual tax rates.
100? right. Why would anyone choose to live in a city? Only those without choice(brain)will remain in cesspools of immigrants and crime.
Feminist and/or snowflake all moving to Canada or committing suicide Bull Run? In a perfect world but…
We sure as fuck don’t want them.
– Alberta.
No worries run. Feminists are so lazy fat and ugly roman bath no doubt. But those darned snowflakes may take their name seriously. Until the first winter when they freeze to death trying to start a fire or Summer when strolling to “pet” the bears. You will be fine.
plus our immunity to black flies is not easily acquired
Thanks, Obama!